Australia's major supermarkets’ rank based on their treatment of suppliers has been released publicly for the first time.

The results? ALDI has emerged as the top choice among suppliers, leaving behind the big four—Coles, Woolworths, and IGA-supplier Metcash.

This ranking, previously kept confidential, was released by Grocery Code Independent Reviewer Chris Leptos AO, a Treasury-appointed official responsible for assessing the performance of the Food and Grocery Code of Conduct.

The report was based on feedback from suppliers for the 2022-2023 period.

The decision to make the rankings public is a significant step towards transparency in the supermarket sector.

Grocery Code Independent Reviewer revealed the ALDI was a top choice among suppliers. Credit: Marques Thomas/Unsplash

'By publishing the rankings, I am hopeful that it will be used to stimulate a competitive “race to the top”,' Leptos wrote.

The suppliers were asked to rate the supermarkets on four aspects of their treatment—fair and reasonable dealings, clear and prompt communication, dealing in good faith, and taking prompt, constructive action to resolve issues raised.

ALDI scored highest in all categories, followed by Metcash, with Coles and Woolworths trailing behind in third and fourth place, respectively.

Interestingly, a notable 71 per cent of suppliers have reported experiencing no problems, and no formal complaint was raised about supermarkets’ treatment of suppliers last year.

The Australian Food and Grocery Code of Conduct, a voluntary code prescribed under the Competition and Consumer Act 2010, establishes an independent dispute resolution process where suppliers can take confidential complaints about their treatment to each supermarket’s independent arbiter.

However, the fear of retribution often prevents suppliers from lodging formal complaints.

Mr Leptos stated that while he ‘did not receive any requests to review a complaint handled by the Code Arbiters in the 2022-23 reporting period’, he continues ‘to receive direct approaches from suppliers where they are reluctant to formalise a complaint’.

‘The lack of formal complaints may be explained by the changes adopted by the Code Signatories—specifically, authorising their Code Arbiters to play a more proactive role in listening to supplier concerns without lodging a formal complaint,’ he continued.

One Queensland grower, who wished to remain anonymous, explained the dilemma faced by suppliers.

'The problem is if you were to make a complaint and you then lost your contract, then your business is compromised. If you lose the ability to trade with either Coles or Woolworths, then your business is not viable because of your economy of scale,’ they explained.

Shaun Jackson, the owner of a melon producer, Daintree Fresh, shared that he had conversations with ‘thousands of growers about their experience’ with the supermarkets and mentioned that ‘all of them are too scared to say anything’.

‘They’re absolutely terrified of retribution,’ he added.

The fear of damaging commercial relationships was identified as a significant impediment to raising issues with Woolworths and Coles by 41 per cent of respondents, compared to 28 per cent for Metcash and 21 per cent for ALDI.

Releasing these rankings is a significant step towards fostering greater competition within the sector.

Assistant Minister for Competition Andrew Leigh said, 'Most Australians buy their groceries at the big supermarket chains, and it’s important that those big supermarkets [do] the right thing by their suppliers. The release of these rankings is an important transparency measure that fosters greater competition within the sector. Holding big companies accountable helps encourage a race to the top.'

The report comes after several farmers and industry associations have expressed concerns about the viability of the fresh produce industry in Australia, partly blaming the conduct of the supermarkets and low wholesale prices paid to growers.

‘We’re not retailing the right price to keep the product moving and selling, plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive,’ Ross Marsolino, a farmer from Victoria, claimed.

In response to the report, a Coles spokeswoman said the supermarket '[continues] to work hard to build and maintain strong, trusted relationships with our suppliers'.

‘Ongoing feedback and engagement are important to us, and we are reviewing the report closely,’ she added.

Woolworths also welcomed the report and committed to investigating and resolving supplier complaints fairly and expeditiously.

‘Our Trade Partner Complaints Integrity Policy makes our commitment clear—no supplier will experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,’ the company spokeswoman assured.

Oliver Bongardt, Managing Director of National Buying at ALDI, said in a statement that the supermarket set 'high standards when it comes to collaborating with our suppliers, and we pride ourselves on being a fair and reasonable partner to them'.

‘Seeing our values and how we do business reflected in the Independent Review is certainly heartening. We take our relationships with our partners extremely seriously because our low-price value proposition is only possible through our ongoing partnership with our extensive network of Australian suppliers,’ he stated.

Metcash is yet to release a statement.

The public ranking of supermarkets based on supplier feedback is a significant step towards transparency and accountability in the supermarket sector.

‘The government is committed to improving conduct in the supplier/retailer relations. We have commenced the 2023-24 review of the Code provisions to ensure they remain effective in fostering a vibrant and competitive food and grocery sector in Australia,’ Mr Leigh’s office stated.

Key Takeaways

• The Grocery Code Independent Reviewer has ranked Australia's big four supermarkets for the first time based on supplier feedback.
  
• ALDI was rated the best overall, followed by IGA-supplier Metcash, with Coles and Woolworths in third and fourth place, respectively.
  
• Despite this, no formal complaints were raised about supermarkets’ treatment of suppliers last year. Many fear 'retribution', with 41 per cent identifying the fear of damaging their commercial relationship as an impediment to raising issues with Coles and Woolworths.
  
• The Independent Reviewer, Chris Leptos AO, hopes the public sharing of these rankings will stimulate a 'race to the top', improving conduct amongst supermarkets. He also noted that although 71 per cent of suppliers reported no issues, he continues to receive direct approaches from those reluctant to formally complain.
  

What do you think about these rankings, members? Do you agree with the report? Let us know in the comments below.

 

[Col@45]

I feel sorry for the suppliers who work hard to grow our fresh fruit & Veg, get minimal money from these supermarkets and struggle to survive....at the same time the big supermarkets are making these huge profits...not right !

 

[Lorraine White]

Australia's major supermarkets’ rank based on their treatment of suppliers has been released publicly for the first time.

The results? ALDI has emerged as the top choice among suppliers, leaving behind the big four—Coles, Woolworths, and IGA-supplier Metcash.

This ranking, previously kept confidential, was released by Grocery Code Independent Reviewer Chris Leptos AO, a Treasury-appointed official responsible for assessing the performance of the Food and Grocery Code of Conduct.

The report was based on feedback from suppliers for the 2022-2023 period.

The decision to make the rankings public is a significant step towards transparency in the supermarket sector.

View attachment 36523

Grocery Code Independent Reviewer revealed the ALDI was a top choice among suppliers. Credit: Marques Thomas/Unsplash

'By publishing the rankings, I am hopeful that it will be used to stimulate a competitive “race to the top”,' Leptos wrote.

The suppliers were asked to rate the supermarkets on four aspects of their treatment—fair and reasonable dealings, clear and prompt communication, dealing in good faith, and taking prompt, constructive action to resolve issues raised.

ALDI scored highest in all categories, followed by Metcash, with Coles and Woolworths trailing behind in third and fourth place, respectively.

Interestingly, a notable 71 per cent of suppliers have reported experiencing no problems, and no formal complaint was raised about supermarkets’ treatment of suppliers last year.

The Australian Food and Grocery Code of Conduct, a voluntary code prescribed under the Competition and Consumer Act 2010, establishes an independent dispute resolution process where suppliers can take confidential complaints about their treatment to each supermarket’s independent arbiter.

However, the fear of retribution often prevents suppliers from lodging formal complaints.

Mr Leptos stated that while he ‘did not receive any requests to review a complaint handled by the Code Arbiters in the 2022-23 reporting period’, he continues ‘to receive direct approaches from suppliers where they are reluctant to formalise a complaint’.

‘The lack of formal complaints may be explained by the changes adopted by the Code Signatories—specifically, authorising their Code Arbiters to play a more proactive role in listening to supplier concerns without lodging a formal complaint,’ he continued.

One Queensland grower, who wished to remain anonymous, explained the dilemma faced by suppliers.

'The problem is if you were to make a complaint and you then lost your contract, then your business is compromised. If you lose the ability to trade with either Coles or Woolworths, then your business is not viable because of your economy of scale,’ they explained.

Shaun Jackson, the owner of a melon producer, Daintree Fresh, shared that he had conversations with ‘thousands of growers about their experience’ with the supermarkets and mentioned that ‘all of them are too scared to say anything’.

‘They’re absolutely terrified of retribution,’ he added.

The fear of damaging commercial relationships was identified as a significant impediment to raising issues with Woolworths and Coles by 41 per cent of respondents, compared to 28 per cent for Metcash and 21 per cent for ALDI.

Releasing these rankings is a significant step towards fostering greater competition within the sector.

Assistant Minister for Competition Andrew Leigh said, 'Most Australians buy their groceries at the big supermarket chains, and it’s important that those big supermarkets [do] the right thing by their suppliers. The release of these rankings is an important transparency measure that fosters greater competition within the sector. Holding big companies accountable helps encourage a race to the top.'

The report comes after several farmers and industry associations have expressed concerns about the viability of the fresh produce industry in Australia, partly blaming the conduct of the supermarkets and low wholesale prices paid to growers.

‘We’re not retailing the right price to keep the product moving and selling, plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive,’ Ross Marsolino, a farmer from Victoria, claimed.

In response to the report, a Coles spokeswoman said the supermarket '[continues] to work hard to build and maintain strong, trusted relationships with our suppliers'.

‘Ongoing feedback and engagement are important to us, and we are reviewing the report closely,’ she added.

Woolworths also welcomed the report and committed to investigating and resolving supplier complaints fairly and expeditiously.

‘Our Trade Partner Complaints Integrity Policy makes our commitment clear—no supplier will experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,’ the company spokeswoman assured.

Oliver Bongardt, Managing Director of National Buying at ALDI, said in a statement that the supermarket set 'high standards when it comes to collaborating with our suppliers, and we pride ourselves on being a fair and reasonable partner to them'.

‘Seeing our values and how we do business reflected in the Independent Review is certainly heartening. We take our relationships with our partners extremely seriously because our low-price value proposition is only possible through our ongoing partnership with our extensive network of Australian suppliers,’ he stated.

Metcash is yet to release a statement.

The public ranking of supermarkets based on supplier feedback is a significant step towards transparency and accountability in the supermarket sector.

‘The government is committed to improving conduct in the supplier/retailer relations. We have commenced the 2023-24 review of the Code provisions to ensure they remain effective in fostering a vibrant and competitive food and grocery sector in Australia,’ Mr Leigh’s office stated.

Key Takeaways

• The Grocery Code Independent Reviewer has ranked Australia's big four supermarkets for the first time based on supplier feedback.
• ALDI was rated the best overall, followed by IGA-supplier Metcash, with Coles and Woolworths in third and fourth place, respectively.
• Despite this, no formal complaints were raised about supermarkets’ treatment of suppliers last year. Many fear 'retribution', with 41 per cent identifying the fear of damaging their commercial relationship as an impediment to raising issues with Coles and Woolworths.
• The Independent Reviewer, Chris Leptos AO, hopes the public sharing of these rankings will stimulate a 'race to the top', improving conduct amongst supermarkets. He also noted that although 71 per cent of suppliers reported no issues, he continues to receive direct approaches from those reluctant to formally complain.

What do you think about these rankings, members? Do you agree with the report? Let us know in the comments below.

 

[Lorraine White]

I know the Farmers have been feeling the strain for many years now. When I was younger they had stalls at the front of their property where they could sell to the PUBLIC. Many of these were products are what the BIG GROCERY STORES now refuse to sell because they are what they call 'NOT PERFECT'! Why did this happen? Was it because they thought the farmers were selling too much so they thought they would put in place restrictions on the poor FARMERS and they were missing out? Big BUSINESSES are no longer helping people who NEED help and the FARMERS that want to help have been told they can no longer do what they were doing years ago. THINK LONG AND HARD ABOUT THIS.

 

[Petra]

whooohooo go ALDI ♥ Simply the best in these days.

 

[mylittletibbies]

I wonder if this will make any difference to the people who continually slavishly shop at the Big2 and keep complaining about the prices.
If we don't look after the farmers and other suppliers and they keep getting out of the business (eg 100s of dairy farms have disappeared after being driven out by the unviable prices paid at the farm gate by these leeches)
then we are going to end up paying more and more as other things get short of supply.
Look how much the cost of milk has increased.
The public are their own worst enemy.
Congratulations to Aldi.

 

[MaggieMay1948]

Australia's major supermarkets’ rank based on their treatment of suppliers has been released publicly for the first time.

The results? ALDI has emerged as the top choice among suppliers, leaving behind the big four—Coles, Woolworths, and IGA-supplier Metcash.

This ranking, previously kept confidential, was released by Grocery Code Independent Reviewer Chris Leptos AO, a Treasury-appointed official responsible for assessing the performance of the Food and Grocery Code of Conduct.

The report was based on feedback from suppliers for the 2022-2023 period.

The decision to make the rankings public is a significant step towards transparency in the supermarket sector.

View attachment 36523

Grocery Code Independent Reviewer revealed the ALDI was a top choice among suppliers. Credit: Marques Thomas/Unsplash

'By publishing the rankings, I am hopeful that it will be used to stimulate a competitive “race to the top”,' Leptos wrote.

The suppliers were asked to rate the supermarkets on four aspects of their treatment—fair and reasonable dealings, clear and prompt communication, dealing in good faith, and taking prompt, constructive action to resolve issues raised.

ALDI scored highest in all categories, followed by Metcash, with Coles and Woolworths trailing behind in third and fourth place, respectively.

Interestingly, a notable 71 per cent of suppliers have reported experiencing no problems, and no formal complaint was raised about supermarkets’ treatment of suppliers last year.

The Australian Food and Grocery Code of Conduct, a voluntary code prescribed under the Competition and Consumer Act 2010, establishes an independent dispute resolution process where suppliers can take confidential complaints about their treatment to each supermarket’s independent arbiter.

However, the fear of retribution often prevents suppliers from lodging formal complaints.

Mr Leptos stated that while he ‘did not receive any requests to review a complaint handled by the Code Arbiters in the 2022-23 reporting period’, he continues ‘to receive direct approaches from suppliers where they are reluctant to formalise a complaint’.

‘The lack of formal complaints may be explained by the changes adopted by the Code Signatories—specifically, authorising their Code Arbiters to play a more proactive role in listening to supplier concerns without lodging a formal complaint,’ he continued.

One Queensland grower, who wished to remain anonymous, explained the dilemma faced by suppliers.

'The problem is if you were to make a complaint and you then lost your contract, then your business is compromised. If you lose the ability to trade with either Coles or Woolworths, then your business is not viable because of your economy of scale,’ they explained.

Shaun Jackson, the owner of a melon producer, Daintree Fresh, shared that he had conversations with ‘thousands of growers about their experience’ with the supermarkets and mentioned that ‘all of them are too scared to say anything’.

‘They’re absolutely terrified of retribution,’ he added.

The fear of damaging commercial relationships was identified as a significant impediment to raising issues with Woolworths and Coles by 41 per cent of respondents, compared to 28 per cent for Metcash and 21 per cent for ALDI.

Releasing these rankings is a significant step towards fostering greater competition within the sector.

Assistant Minister for Competition Andrew Leigh said, 'Most Australians buy their groceries at the big supermarket chains, and it’s important that those big supermarkets [do] the right thing by their suppliers. The release of these rankings is an important transparency measure that fosters greater competition within the sector. Holding big companies accountable helps encourage a race to the top.'

The report comes after several farmers and industry associations have expressed concerns about the viability of the fresh produce industry in Australia, partly blaming the conduct of the supermarkets and low wholesale prices paid to growers.

‘We’re not retailing the right price to keep the product moving and selling, plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive,’ Ross Marsolino, a farmer from Victoria, claimed.

In response to the report, a Coles spokeswoman said the supermarket '[continues] to work hard to build and maintain strong, trusted relationships with our suppliers'.

‘Ongoing feedback and engagement are important to us, and we are reviewing the report closely,’ she added.

Woolworths also welcomed the report and committed to investigating and resolving supplier complaints fairly and expeditiously.

‘Our Trade Partner Complaints Integrity Policy makes our commitment clear—no supplier will experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,’ the company spokeswoman assured.

Oliver Bongardt, Managing Director of National Buying at ALDI, said in a statement that the supermarket set 'high standards when it comes to collaborating with our suppliers, and we pride ourselves on being a fair and reasonable partner to them'.

‘Seeing our values and how we do business reflected in the Independent Review is certainly heartening. We take our relationships with our partners extremely seriously because our low-price value proposition is only possible through our ongoing partnership with our extensive network of Australian suppliers,’ he stated.

Metcash is yet to release a statement.

The public ranking of supermarkets based on supplier feedback is a significant step towards transparency and accountability in the supermarket sector.

‘The government is committed to improving conduct in the supplier/retailer relations. We have commenced the 2023-24 review of the Code provisions to ensure they remain effective in fostering a vibrant and competitive food and grocery sector in Australia,’ Mr Leigh’s office stated.

Key Takeaways

• The Grocery Code Independent Reviewer has ranked Australia's big four supermarkets for the first time based on supplier feedback.
• ALDI was rated the best overall, followed by IGA-supplier Metcash, with Coles and Woolworths in third and fourth place, respectively.
• Despite this, no formal complaints were raised about supermarkets’ treatment of suppliers last year. Many fear 'retribution', with 41 per cent identifying the fear of damaging their commercial relationship as an impediment to raising issues with Coles and Woolworths.
• The Independent Reviewer, Chris Leptos AO, hopes the public sharing of these rankings will stimulate a 'race to the top', improving conduct amongst supermarkets. He also noted that although 71 per cent of suppliers reported no issues, he continues to receive direct approaches from those reluctant to formally complain.

What do you think about these rankings, members? Do you agree with the report? Let us know in the comments below.

I suspect that Woolies and Coles treat their suppliers with as much contempt as they treat their customers.

We, as customers, understand the dilemma facing suppliers and would love to see this system broken down. The "men in the middle" are making mugs out of us all and it's high time the government stepped in and took control because the whole system is out of control.

The supermarkets' behaviour and mode of operating isn't limited to fresh produce. It's across the board. Dry goods, canned goids, imported goods, bread, snacks etc. In fact not only do they continually hike prices by up to 25% but everything is also getting smaller from frozen pastry to confectionery, loaves of bread etc. You name it, we're almist fetting to the point where we're paying twice the price for half the product!

Let's call it what it is it's a duopoly and that duopoly needs to be broken.bring in more competition. It's the only way.

 

[mylittletibbies]

I suspect that Woolies and Coles treat their suppliers with as much contempt as they treat their customers.

We, as customers, understand the dilemma facing suppliers and would love to see this system broken down. The "men in the middle" are making mugs out of us all and it's high time the government stepped in and took control because the whole system is out of control.

The supermarkets' behaviour and mode of operating isn't limited to fresh produce. It's across the board. Dry goods, canned goids, imported goods, bread, snacks etc. In fact not only do they continually hike prices by up to 25% but everything is also getting smaller from frozen pastry to confectionery, loaves of bread etc. You name it, we're almist fetting to the point where we're paying twice the price for half the product!

Let's call it what it is it's a duopoly and that duopoly needs to be broken.bring in more competition. It's the only way.

If more people supported Aldi it would be a start. I wonder how our parents survived with only the corner stores to shop at.
Do we really need the choice of dozens of brands of everything, we've been brainwashed into thinking we do
People have got so precious, only will eat this brand or that brand etc
There are millions of people in the world who would just be happy to have anything to eat

 

[darrellh]

My husband and I have decided to avoid Coles and Woolworths as much as we can and will shop at Aldi and IGA to try and swing away from the top 2. Their power is too strong and if more people did the same they mighr start getting the message. Ripping off producers then gouging customers has gone on too long and denying it is manifestly ridiculous.

 

[Suemac]

Australia's major supermarkets’ rank based on their treatment of suppliers has been released publicly for the first time.

The results? ALDI has emerged as the top choice among suppliers, leaving behind the big four—Coles, Woolworths, and IGA-supplier Metcash.

This ranking, previously kept confidential, was released by Grocery Code Independent Reviewer Chris Leptos AO, a Treasury-appointed official responsible for assessing the performance of the Food and Grocery Code of Conduct.

The report was based on feedback from suppliers for the 2022-2023 period.

The decision to make the rankings public is a significant step towards transparency in the supermarket sector.

View attachment 36523

Grocery Code Independent Reviewer revealed the ALDI was a top choice among suppliers. Credit: Marques Thomas/Unsplash

'By publishing the rankings, I am hopeful that it will be used to stimulate a competitive “race to the top”,' Leptos wrote.

The suppliers were asked to rate the supermarkets on four aspects of their treatment—fair and reasonable dealings, clear and prompt communication, dealing in good faith, and taking prompt, constructive action to resolve issues raised.

ALDI scored highest in all categories, followed by Metcash, with Coles and Woolworths trailing behind in third and fourth place, respectively.

Interestingly, a notable 71 per cent of suppliers have reported experiencing no problems, and no formal complaint was raised about supermarkets’ treatment of suppliers last year.

The Australian Food and Grocery Code of Conduct, a voluntary code prescribed under the Competition and Consumer Act 2010, establishes an independent dispute resolution process where suppliers can take confidential complaints about their treatment to each supermarket’s independent arbiter.

However, the fear of retribution often prevents suppliers from lodging formal complaints.

Mr Leptos stated that while he ‘did not receive any requests to review a complaint handled by the Code Arbiters in the 2022-23 reporting period’, he continues ‘to receive direct approaches from suppliers where they are reluctant to formalise a complaint’.

‘The lack of formal complaints may be explained by the changes adopted by the Code Signatories—specifically, authorising their Code Arbiters to play a more proactive role in listening to supplier concerns without lodging a formal complaint,’ he continued.

One Queensland grower, who wished to remain anonymous, explained the dilemma faced by suppliers.

'The problem is if you were to make a complaint and you then lost your contract, then your business is compromised. If you lose the ability to trade with either Coles or Woolworths, then your business is not viable because of your economy of scale,’ they explained.

Shaun Jackson, the owner of a melon producer, Daintree Fresh, shared that he had conversations with ‘thousands of growers about their experience’ with the supermarkets and mentioned that ‘all of them are too scared to say anything’.

‘They’re absolutely terrified of retribution,’ he added.

The fear of damaging commercial relationships was identified as a significant impediment to raising issues with Woolworths and Coles by 41 per cent of respondents, compared to 28 per cent for Metcash and 21 per cent for ALDI.

Releasing these rankings is a significant step towards fostering greater competition within the sector.

Assistant Minister for Competition Andrew Leigh said, 'Most Australians buy their groceries at the big supermarket chains, and it’s important that those big supermarkets [do] the right thing by their suppliers. The release of these rankings is an important transparency measure that fosters greater competition within the sector. Holding big companies accountable helps encourage a race to the top.'

The report comes after several farmers and industry associations have expressed concerns about the viability of the fresh produce industry in Australia, partly blaming the conduct of the supermarkets and low wholesale prices paid to growers.

‘We’re not retailing the right price to keep the product moving and selling, plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive,’ Ross Marsolino, a farmer from Victoria, claimed.

In response to the report, a Coles spokeswoman said the supermarket '[continues] to work hard to build and maintain strong, trusted relationships with our suppliers'.

‘Ongoing feedback and engagement are important to us, and we are reviewing the report closely,’ she added.

Woolworths also welcomed the report and committed to investigating and resolving supplier complaints fairly and expeditiously.

‘Our Trade Partner Complaints Integrity Policy makes our commitment clear—no supplier will experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,’ the company spokeswoman assured.

Oliver Bongardt, Managing Director of National Buying at ALDI, said in a statement that the supermarket set 'high standards when it comes to collaborating with our suppliers, and we pride ourselves on being a fair and reasonable partner to them'.

‘Seeing our values and how we do business reflected in the Independent Review is certainly heartening. We take our relationships with our partners extremely seriously because our low-price value proposition is only possible through our ongoing partnership with our extensive network of Australian suppliers,’ he stated.

Metcash is yet to release a statement.

The public ranking of supermarkets based on supplier feedback is a significant step towards transparency and accountability in the supermarket sector.

‘The government is committed to improving conduct in the supplier/retailer relations. We have commenced the 2023-24 review of the Code provisions to ensure they remain effective in fostering a vibrant and competitive food and grocery sector in Australia,’ Mr Leigh’s office stated.

Key Takeaways

• The Grocery Code Independent Reviewer has ranked Australia's big four supermarkets for the first time based on supplier feedback.
• ALDI was rated the best overall, followed by IGA-supplier Metcash, with Coles and Woolworths in third and fourth place, respectively.
• Despite this, no formal complaints were raised about supermarkets’ treatment of suppliers last year. Many fear 'retribution', with 41 per cent identifying the fear of damaging their commercial relationship as an impediment to raising issues with Coles and Woolworths.
• The Independent Reviewer, Chris Leptos AO, hopes the public sharing of these rankings will stimulate a 'race to the top', improving conduct amongst supermarkets. He also noted that although 71 per cent of suppliers reported no issues, he continues to receive direct approaches from those reluctant to formally complain.

What do you think about these rankings, members? Do you agree with the report? Let us know in the comments below.

I shop at ALDI, and am pleased to do so. I appreciate the lower prices there, but I would be even more pleased to know that their suppliers are getting a fair deal.

 

[StarTrekker]

I buy my fresh fruit & vegies, meat and some frozen stuff from a locally owned market. They won 1st place.

Australia’s Favourite Local Fruit and Vegetable Shops have been announced!​

The top three stores nationally are:

• 1st: Arnold’s (Wodonga, VIC)
• 2nd Adelaide Fresh Fruiterers (Morphett Vale, SA)
• 3rd, Metro Fresh (Findon, SA)

 

[rehandra]

I suspect that Woolies and Coles treat their suppliers with as much contempt as they treat their customers.

We, as customers, understand the dilemma facing suppliers and would love to see this system broken down. The "men in the middle" are making mugs out of us all and it's high time the government stepped in and took control because the whole system is out of control.

The supermarkets' behaviour and mode of operating isn't limited to fresh produce. It's across the board. Dry goods, canned goids, imported goods, bread, snacks etc. In fact not only do they continually hike prices by up to 25% but everything is also getting smaller from frozen pastry to confectionery, loaves of bread etc. You name it, we're almist fetting to the point where we're paying twice the price for half the product!

Let's call it what it is it's a duopoly and that duopoly needs to be broken.bring in more competition. It's the only way.

I have found the product at Aldi always seems and looks fresher than Coles and Woolworths.

 

[Glo72]

Aldi is my favourite store. I just wish they had more gluten-free products and sold lactose free products as well.

 

[Macarj]

My husband and I have decided to avoid Coles and Woolworths as much as we can and will shop at Aldi and IGA to try and swing away from the top 2. Their power is too strong and if more people did the same they mighr start getting the message. Ripping off producers then gouging customers has gone on too long and denying it is manifestly ridiculous.

We used to shop at ALDI in NSW when we moved to Tasmania I was shocked there was no ALDI

 

[Annna]

If more people supported Aldi it would be a start. I wonder how our parents survived with only the corner stores to shop at.
Do we really need the choice of dozens of brands of everything, we've been brainwashed into thinking we do
People have got so precious, only will eat this brand or that brand etc
There are millions of people in the world who would just be happy to have anything to eat

Well, Corner stores calculated markup in decent (DECENT) ways.

 

[Annna]

Transparency needed.

Show the buying public the % if markup on fresh produce.

Re to stores saying there is no retribution for complaining producers, it is an easy, simple statement and one made to convince the paying public.

The question then arises, why are producers fearful of making complaints?

 

[mylittletibbies]

Well, Corner stores calculated markup in decent (DECENT) ways.

Yes they did, my mother used to have a corner store
But we, the public, went running off to the supermarkets, forcing all the
corner stores out of business
Once all the little stores were gone the supermarkets were free to charge what they like.
The little corner stores were just family owned, just wanting to make a living.
So now here we are stuck with these multi conglomorates, with all their shareholders, rubbing their hands together, all the way to the bank, while we, the stupid public, pay the price. But whose to blame?

 

[gamiry]

Australia's major supermarkets’ rank based on their treatment of suppliers has been released publicly for the first time.

The results? ALDI has emerged as the top choice among suppliers, leaving behind the big four—Coles, Woolworths, and IGA-supplier Metcash.

This ranking, previously kept confidential, was released by Grocery Code Independent Reviewer Chris Leptos AO, a Treasury-appointed official responsible for assessing the performance of the Food and Grocery Code of Conduct.

The report was based on feedback from suppliers for the 2022-2023 period.

The decision to make the rankings public is a significant step towards transparency in the supermarket sector.

View attachment 36523

Grocery Code Independent Reviewer revealed the ALDI was a top choice among suppliers. Credit: Marques Thomas/Unsplash

'By publishing the rankings, I am hopeful that it will be used to stimulate a competitive “race to the top”,' Leptos wrote.

The suppliers were asked to rate the supermarkets on four aspects of their treatment—fair and reasonable dealings, clear and prompt communication, dealing in good faith, and taking prompt, constructive action to resolve issues raised.

ALDI scored highest in all categories, followed by Metcash, with Coles and Woolworths trailing behind in third and fourth place, respectively.

Interestingly, a notable 71 per cent of suppliers have reported experiencing no problems, and no formal complaint was raised about supermarkets’ treatment of suppliers last year.

The Australian Food and Grocery Code of Conduct, a voluntary code prescribed under the Competition and Consumer Act 2010, establishes an independent dispute resolution process where suppliers can take confidential complaints about their treatment to each supermarket’s independent arbiter.

However, the fear of retribution often prevents suppliers from lodging formal complaints.

Mr Leptos stated that while he ‘did not receive any requests to review a complaint handled by the Code Arbiters in the 2022-23 reporting period’, he continues ‘to receive direct approaches from suppliers where they are reluctant to formalise a complaint’.

‘The lack of formal complaints may be explained by the changes adopted by the Code Signatories—specifically, authorising their Code Arbiters to play a more proactive role in listening to supplier concerns without lodging a formal complaint,’ he continued.

One Queensland grower, who wished to remain anonymous, explained the dilemma faced by suppliers.

'The problem is if you were to make a complaint and you then lost your contract, then your business is compromised. If you lose the ability to trade with either Coles or Woolworths, then your business is not viable because of your economy of scale,’ they explained.

Shaun Jackson, the owner of a melon producer, Daintree Fresh, shared that he had conversations with ‘thousands of growers about their experience’ with the supermarkets and mentioned that ‘all of them are too scared to say anything’.

‘They’re absolutely terrified of retribution,’ he added.

The fear of damaging commercial relationships was identified as a significant impediment to raising issues with Woolworths and Coles by 41 per cent of respondents, compared to 28 per cent for Metcash and 21 per cent for ALDI.

Releasing these rankings is a significant step towards fostering greater competition within the sector.

Assistant Minister for Competition Andrew Leigh said, 'Most Australians buy their groceries at the big supermarket chains, and it’s important that those big supermarkets [do] the right thing by their suppliers. The release of these rankings is an important transparency measure that fosters greater competition within the sector. Holding big companies accountable helps encourage a race to the top.'

The report comes after several farmers and industry associations have expressed concerns about the viability of the fresh produce industry in Australia, partly blaming the conduct of the supermarkets and low wholesale prices paid to growers.

‘We’re not retailing the right price to keep the product moving and selling, plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive,’ Ross Marsolino, a farmer from Victoria, claimed.

In response to the report, a Coles spokeswoman said the supermarket '[continues] to work hard to build and maintain strong, trusted relationships with our suppliers'.

‘Ongoing feedback and engagement are important to us, and we are reviewing the report closely,’ she added.

Woolworths also welcomed the report and committed to investigating and resolving supplier complaints fairly and expeditiously.

‘Our Trade Partner Complaints Integrity Policy makes our commitment clear—no supplier will experience commercial detriment as a result of raising a Grocery Code complaint with Woolworths,’ the company spokeswoman assured.

Oliver Bongardt, Managing Director of National Buying at ALDI, said in a statement that the supermarket set 'high standards when it comes to collaborating with our suppliers, and we pride ourselves on being a fair and reasonable partner to them'.

‘Seeing our values and how we do business reflected in the Independent Review is certainly heartening. We take our relationships with our partners extremely seriously because our low-price value proposition is only possible through our ongoing partnership with our extensive network of Australian suppliers,’ he stated.

Metcash is yet to release a statement.

The public ranking of supermarkets based on supplier feedback is a significant step towards transparency and accountability in the supermarket sector.

‘The government is committed to improving conduct in the supplier/retailer relations. We have commenced the 2023-24 review of the Code provisions to ensure they remain effective in fostering a vibrant and competitive food and grocery sector in Australia,’ Mr Leigh’s office stated.

Key Takeaways

• The Grocery Code Independent Reviewer has ranked Australia's big four supermarkets for the first time based on supplier feedback.
• ALDI was rated the best overall, followed by IGA-supplier Metcash, with Coles and Woolworths in third and fourth place, respectively.
• Despite this, no formal complaints were raised about supermarkets’ treatment of suppliers last year. Many fear 'retribution', with 41 per cent identifying the fear of damaging their commercial relationship as an impediment to raising issues with Coles and Woolworths.
• The Independent Reviewer, Chris Leptos AO, hopes the public sharing of these rankings will stimulate a 'race to the top', improving conduct amongst supermarkets. He also noted that although 71 per cent of suppliers reported no issues, he continues to receive direct approaches from those reluctant to formally complain.

What do you think about these rankings, members? Do you agree with the report? Let us know in the comments below.

I don't agree with this. After almost 25 years with Coles I gave them away after a phone supervisor abused me twice and a delivery man did the same and left all my cold stufff outside inc. icecream and meat. Woolies not so bad but my pick is IGA. Beautiful people in the shop in Bundy including the Manager, Rodney. Same goes for Lyle and Jenny who help with online problems. I've been into Aldi twice. First time I felt very uncomfortable so walked out. Second time they had a special on for a cordless mouse. Special Day, second in the door, asked man where he got the one in his hand and his reply floored me " it was the only one and a worker told me they were all sold LAST week".

 

[Jennylolo]

I buy my fresh fruit & vegies, meat and some frozen stuff from a locally owned market. They won 1st place.

Australia’s Favourite Local Fruit and Vegetable Shops have been announced!​

The top three stores nationally are:

• 1st: Arnold’s (Wodonga, VIC)
• 2nd Adelaide Fresh Fruiterers (Morphett Vale, SA)
• 3rd, Metro Fresh (Findon, SA)

I shop at Adelaide fresh. Amazing quality and lasts a long time before starting to not be the best. Great selection. Their turnover is enormous and market buy every day. Very little remains in their cold room , it goes so fast.

 

[arthur dagger]

I agree that Aldi may be cheaper but in the long run they are not. YOU DON'T get a 4 cents voucher so you can get off fuel but not only that you don't get rewards points so you can use. So it all works equal.